Newsquawk Daily European Equity Opening News - 24th March 2025

24th March 2025

ASIA

APAC stocks traded mixed in a rangebound fashion amid tariff and trade-related uncertainty, while weekend newsflow was mostly centred around geopolitics although there were some reports that suggested the potential for a more focused approach by US President Trump regarding April 2nd 'Liberation Day' reciprocal tariffs. ASX 200 was little changed as strength in financials and consumer discretionary offset the underperformance in consumer staples and tech, while the latest flash PMI data from Australia accelerated. Nikkei 225 swung between gains and losses with price action indecisive amid a weaker currency and a deterioration in Japanese flash PMIs which all printed in contraction territory. Hang Seng and Shanghai Comp conformed to the lacklustre mood amid lingering frictions although Chinese Premier Li stated at a business forum it is necessary for countries to open up their markets in an increasingly fragmented world and that China was ready for any unexpected shocks, while the PBoC reiterated its pledge to cut rates and RRR at an appropriate time during its quarterly meeting on Friday.

Sumitomo Realty (8830 JT) - Elliott has built a significant stake in Japanese real estate developer Sumitomo Realty, according to Bloomberg. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.47% at 22,891, FTSE 100: -0.68% at 8,643, CAC 40: -0.63% at 8,043, Euro Stoxx 50: -0.71% at 5,412, AEX: -0.48% at 915, IBEX 35: +0.31% at 13,348, FTSE MIB: -0.39% at 39,036, SMI: -0.29% at 13,060, PSI: -0.92% at 6,798.

SECTORS: Telecoms 0.77%, Utilities 0.18%, Consumer Stpl -0.08%, Financials -0.24%, Consumer Disc -0.25%, Energy -0.52%, Healthcare -0.65%, IT -0.79%, Industrials -1.26%, Materials -1.74%

FTSE 100

Rolls-Royce (RR/ LN) - Co. is said to be preparing to increase production in the US to counter the effect of US tariffs, according to Telegraph sources. The source added that the Co. cannot rule out transfers from the UK and European sites if the US ramps up its trade war. (Telegraph)

UK/US - The UK government is reportedly considering plans to reduce or even abolish its digital services tax before April 2nd, via Bloomberg News. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

Capita (CPI LN) upgraded to Outperform from Sector Perform at RBC

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

Hannover Re (HNR1 GY) initiated with Buy at Goldman Sachs

CAC

L'Oreal (OR FP) - Co, alongside other European beauty firms, have lobbied the EU to remove US cosmetics from its list of potential retaliation targets. (FT)

LVMH (MC FP) - Co's brand Loewe has appointed two new creative directors - Jack McCollough and Lazaro Hernandez - effective April 7th. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Scor (SCR FP) initiated with Buy at Goldman Sachs

PAN EUROPE

Airliners - Service at Heathrow Airport returned to normal two days after forced closure. Separately, National Grid (NG/ LN) CEO has confirmed power was available to keep Heathrow open throughout Friday's shutdown. (BBC/Guardian)

Auto Makers/Shipping names - International carmakers are said to be rushing to ship vehicles and parts to the US ahead of the next round of US tariffs. CEO of shipping firm Wallenius Wilhelmsen said there was more Asia volume than they are able to take, and said it added capacity to meet demand. (FT)

EU Financials - EU financial watchdogs warned loosening rules risks another financial crash, according to FT. (FT)

EU Mining Sectors - JP Morgan double-upgrades the European Mining Sector to Overweight from Underweight. (Newswires)

Italian Manufacturers - The Italian Industry Minister said Germany's defence spending could revive the Italian manufacturing sector. (FT)

Macro - Russia-US talks in Saudi Arabia are to begin at 07:00GMT/03:00EDT, according to TASS citing an unnamed source. (Newswires)

Telecom Italia (TIT IM)/ Poste Italiane (PST IM)/Vivendi (VIV FP) - Vivendi could reportedly sell part or all of its remaining stake in TIM to Poste Italiane and PE firm CVC, according to several Italian newspapers over the weekend. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.08% at 5,668, NDX +0.39% at 19,754, DJI +0.08% at 41,985, RUT -0.56% at 2,057

SECTORS: Real Estate -1.02%, Materials -1.00%, Utilities -0.66%, Energy -0.62%, Industrials -0.54%, Financials -0.39%, Health -0.30%, Consumer Staples -0.09%, Technology +0.49%, Consumer Discretionary +0.63%, Communication Services +1.00%.

Coinbase (COIN) - Co. is reportedly in advanced talks to buy crypto exchange Deribit, via Bloomberg. (Bloomberg)

NVIDIA (NVDA) - Malaysia is to crack down on NVIDIA (NVDA) chip flows under US pressure and Malaysia's Trade Minister says Washington suspects high-end semiconductors are making it to China despite trade controls, according to FT. (FT)

GLOBAL

Turkish Stocks - Turkish court formally arrested Istanbul Mayor Imamoglu after prosecutors asked the court to keep Imamoglu and four aides in jail pending their trial on terrorism and corruption charges. It was also reported that Turkey’s Central Bank Governor said in a meeting with bank executives that the central bank will do whatever is necessary within market rules, while the Capital Markets Board announced a ban on short selling on the Istanbul Stock Exchange until April 25th, eased the equity ratio requirement for credit capital markets transactions and removed the maximum limit for the total amount to be used for share buybacks of listed companies.

24 Mar 2025 - 06:56- EquitiesResearch Sheet- Source: Newsquawk